Given the following information, determine the number of shares of stock that must be purchased to form
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Given the following information, determine the number of shares of stock that must be purchased to form a hedged position if one option contract (covering 100 shares of stock) is to be written.
Stock price = $100
Exercise price = $95
Interest rate = 8%
Time to expiration = 180 days
Standard deviation — 0.6
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The hedge ratio Delta or N d 1 069 Therefore for every call option written 069 ...View the full answer
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